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Edexcel Business A level Unit 1 > Mass and Niche Markets > Flashcards

Flashcards in Mass and Niche Markets Deck (9)
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1

What is the difference between mass markets and niche markets?

-In a mass market, customers' needs are less "specific" and more "general"

-A niche market is when a business sells a product to a small customer group, in a market which has often been untouched by larger businesses.

2

Give an example of a mass and a niche market

-Mass market - LuLu, Carrefour
- Niche market - Louis Vuitton, Gucci

3

Give two positives of mass and niche markets

-Mass Markets: - Lower risk since resources are focused on one large market.
-It is associated with higher production output and capacity + potential for economies of scale

-Niche Market: Gives you a clear focus since you are targeting a particular group of customers.
-Profit margins are often higher.

4

Give two negatives of mass and niche markets

-Niche Markets-Vulnerable to market changes
-Likely to attract competition if successful

-Mass Markets-Fixed Costs
-Fierce Competition

5

Which two ways can market size be measured?

-By Volume
-By Value

6

What is market share and how is this calculated?

-This is the proportion of a market that is held by a business.
-It is calculated like this: (Sales of a business / total sales in the market) x 100

7

What is a ‘market leader’?

The business who has the most market share in the market.

8

What is meant by a ‘market’?

A market is the place where buyers and sellers meet. Businesses can be categorized depending on which market they operate in.

9

Why is it important for businesses to know their market share?

To know whether their product/s is failing or not so that they know what their next steps are.